The AC drives market was valued at USD 14.68 Billion in 2015, and is expected to grow at a CAGR of 7.0% from 2016 to 2021. Increasing urbanization & industrialization, rising need for energy efficiency, and regulations on energy efficiency are major factors driving the AC drives market.

The years considered for the study are as follows:

Base Year  2015

Estimated Year  2016

Projected Year  2021

Forecast Period  2016 to 2021

2015 has been considered as the base year for company profiles. Whenever information was unavailable for the base year, the prior year has been considered.

Objectives of the Study

To define and segment the global AC drives market

To estimate the market size, in terms of value, of the global AC drives market

To analyse the market with respect to end-use industry, application, voltage, power rating, and region

To provide a detailed information on major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)

To analyse the major stakeholders of the global AC drives market and provide details of the competitive landscape for key market leaders

To study industrial trends and forecast the North American, European, Asia-Pacific, South American, the Middle East, and African markets

To track and analyse competitive developments such as contract agreements, mergers and acquisitions, new product developments, and Research and Development (R&D) in the AC drives market

Research Methodology

This research study involved the use of extensive secondary sources, directories, and databases such as Hoovers, Bloomberg Businessweek, Factiva, and OneSource to identify and collect information useful for a technical, market-oriented, and commercial study of the global AC drives market. Primary sources are mainly industry experts from core and related industries, preferred suppliers, manufacturers, distributors, service providers, technology developers, standard and certification organizations of companies, and organizations related to all the segments of this industrys value chain. The points given below explain the research methodology.

Study of annual revenue and market developments of major players providing AC drives

Analysis of major applications of and demand for AC drives from end-use industries

Assessment of future trends and industrial growth of end-use industries

Assessment of AC drives market with respect to the voltage used for different applications

Study of market trends in various regions/countries supported by application of AC drives in the power electronics, alternative energy, industrial, transportation, telecom and other industries

Study of contracts and developments related to AC drives, for key players, across different regions

Finalization of overall market sizes by triangulating the supply-side data, which includes product developments, supply chain, and annual revenues of companies manufacturing AC drives across the globe

After arriving at the overall market size, the total market has been split into several segments and subsegments. The figure given below shows the breakdown of primaries on the basis of company type, designation, and region, conducted during the research study.

The ecosystem of the global AC drives market starts with suppliers of basic components such as transistors, inverters, and DC circuit & rectifier units. The manufactured parts are then assembled by the OEM (original equipment manufacturer) to form an AC drive set, which is then tested. This stage is followed by the distribution stage, following which the product is provided to the end-users. Distribution is the next stage of the supply chain. The top players of the industry market their products through self-operated sales offices located near target markets, while regional players rely on distribution partnerships to access diverse markets. Some of the major players in AC drives market are ABB Ltd. (Switzerland), Siemens AG (Germany), Danfoss Group (Denmark), Schneider Electric SE (France), Rockwell Automation, Inc. (U.S.), Mitsubishi Electric Co. (Japan), and Yaskawa Electric Corporation (Japan) , among others.

The global AC drives market is projected to grow at a CAGR of 7.0% from 2016 to 2021, to reach a market size of USD 22.07 Billion by 2021. This growth is attributed to the increasing urbanization & industrialization, rising need for energy efficiency, and regulations on energy efficiency.

The report segments the AC drives market based on end-user industries into oil & gas, water & wastewater, power generation, building automation, food & beverage, metals & mining, chemicals & petrochemicals, and other industries. Oil & gas segment is the largest end-user of AC drives as it offers good speed controls & high energy savings. Based on voltage, the AC drives market has been segmented in low voltage and medium voltage AC drives. The low voltage AC drives segment is expected to dominate the AC drives market during the forecast period. The AC drives market has also been segmented based on power rating into three segments: low (below 40 kW), medium (41  200 kW), and high (above 200 kW). Demand from building automation, food & beverage, oil & gas, construction, and pulp & paper industries will drive the low power AC drives market during the forecast period. The report segments the AC drives market based on applications into pump, fan, compressors, conveyors, extruders, and others. Increased demand for HVAC applications offered by pumps is expected to dominate the AC drives market.

In this report, the AC drives market has been analysed with respect to five regions, namely, North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Asia-Pacific is expected to dominate the global AC drives market during the forecast period. Asia-Pacific is also projected to grow at the fastest CAGR from 2016 to 2021, owing to rising need for energy efficiency and industrialization in the region.

The decrease in Greenfield investment owing to continuous fall in oil prices is expected to slow down the demand for AC drives for the forecast period. However, AC drives have huge opportunity in replacement sector. In addition, industrial internet of things (IIoT) is also an opportunity for AC drives market. Some of the leading players in the AC drives market include ABB Ltd. (Switzerland), Siemens AG (Germany), Danfoss Group (Denmark), Schneider Electric SE (France), Rockwell Automation, Inc. (U.S.), Mitsubishi Electric Co. (Japan), and Yaskawa Electric Corporation (Japan). New product development was the strategy most commonly adopted by top players in the market, constituting 26.5% of the total developments from 2012 to 2016. It was followed by investment & expansion, contracts & agreements, and mergers & acquisitions.

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